The federal government on Monday announced an initial list of designated regions in all three Prairie Provinces and British Columbia where Livestock Tax Deferral has been authorized for 2023 due to extreme weather conditions.
The government said in a release it recognizes the significant challenges livestock producers in Western Canada are facing due to exceptionally dry conditions. Compounded by subsequent years of drought, pastures and forage production are significantly impacted, leading to low feed supplies for livestock, it added.
The Livestock Tax Deferral provision allows livestock producers who are forced to sell all or part of their breeding herd due to drought or excess moisture to defer a portion of their income from sales until the following tax year. The income may be at least partially offset by the cost of re-acquiring breeding animals, thus reducing the tax burden associated with the original sale.
As a preliminary list of prescribed drought and flood regions is usually completed in the early fall, designation of the tax deferral provision earlier in the year helps provide assurance for producers as they make difficult herd management decisions. The government said it will continue to monitor conditions across the country and will add other regions to the tax deferral throughout the year if they meet the criteria.
The criteria for identifying regions for Livestock Tax Deferral is forage yields of less than 50% of the long-term average caused by drought or excess moisture. Eligible regions are identified based on weather, climate and production data, in consultation with industry and provinces. Under the Livestock Tax Deferral provision, to defer income, the breeding herd must have been reduced by at least 15%.
Source : Syngenta.ca